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Central Bank Of Armenia Holds Its Benchmark Refinancing Rate Steady

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  • Central Bank Of Armenia Holds Its Benchmark Refinancing Rate Steady

    CENTRAL BANK OF ARMENIA HOLDS ITS BENCHMARK REFINANCING RATE STEADY AT 8.0 PERCENT

    YEREVAN, February 12. / ARKA /. The Central Bank of Armenia (CBA) said
    today it held its benchmark refinancing rate steady at 8.0 percent.

    In a statement it said inflation rose by 2.9 percent in January 2013
    resulting in a 12-month 2.6% inflation, which was close to the lowest
    level of its confidence band of 4 ± 1.5%. The Central Bank said also
    the inflation will rise in the first half to stabilize around its
    confidence band.

    It said amid the ongoing uncertainties concerning political solutions
    to the debt problems of the developed countries, the global economy
    is expected to slowly recover in the forecast horizon. Under the
    influence of a low external demand, formed under these conditions,
    international prices of major commodities and food products will be
    relatively stable, remaining at the current high level.

    The Board said amid increasing economic potential and a rise in
    agricultural production in a low inflation environment an excess
    growth of real consumption has formed, which in the forecast horizon
    will be stabilizing around balanced level. In these circumstances,
    some economic slowdown is expected.

    As a result of anticipated weakening of private demand and weaker
    deterrent effect of fiscal policy the inflation in Armenia is not going
    to have a strong impact on domestic prices. Last time CBA changed its
    refinancing rate on September 6, 2011, reducing it from 8.5% to 8%. -0-

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